SPRINGFIELD, Ill. (WAND) — A new Illinois law enacted January 1 could reduce discrimination in the life insurance industry.
Insurance companies are now banned from limiting or denying life insurance coverage based on a criminal record. Sponsors said families should not be put in debt because of a crime their loved one committed a lifetime ago.
They also argue life insurance companies should provide coverage regardless of the crime someone committed.
"I would argue and suggest that we remove the invisible handcuffs and the invisible prison cells, and allow people who are productive citizens to be able to have coverage to provide for their families," said Sen. Adriane Johnson (D-Waukegan).
The law does not require companies to offer life insurance coverage to people who are currently incarcerated. Still, Republicans are concerned about how this law could shake up life insurance policies.
"It's a very slippery slope once we start removing characteristics, especially something that is based on the determination of how long your life expectancy is expected to go," said Rep. Jeff Keicher (R-Sycamore). "Just on the core idea that we're interfering with the ability to evaluate an insurance risk, we're going to be a no."
Democrats stressed they want to remove hardship for families and say it's okay to bury their loved ones.
"There are some issues with them not being able to provide additional insurance, but this will allow them to purchase a basic policy for burial only," said Rep. Rita Mayfield (D-Waukegan). "It does not provide for additional income to be left to the family members."
The legislation passed out of the Senate on a partisan 36-18 vote and received a 76-38 vote in the House.Â
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